If the USInterest Rate Falls Relative to the British Interest Rate

question 1

Multiple Choice

If the U.S.interest rate falls relative to the British interest rate,

• A) the U.S.demand for pounds will not change
• B) the U.S.demand for pounds will decrease
• C) the U.S.demand for pounds will increase
• D) there will be a rightward movement along the U.S.demand curve for pounds
• E) there will be a leftward movement along the U.S.demand curve for pounds

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